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>Google is promising to bring 50 full-time positions to the area. The company also projects that it will create 2,300 jobs during the 18–24 month construction w

>Google is promising to bring 50 full-time positions to the area. The company also projects that it will create 2,300 jobs during the 18–24 month construction window—a far shorter period than the 20 years of tax relief they're requesting. After construction wraps, with 18 remaining years of tax abatement, there will be a $270,000 tax shortfall for every full-time position created. I read that paragraph from the article to read that after the 20 year term google is looking for this tax relief, the town will be net negative 270K for each of the 50 employees Google creates. If that is not what that paragraph means, then I agree with you, but, my interpretation is that for the state to break even, google has to generate an additional 270K of economic return to the state per each person at the google data center. I find that number to be unlikely.

tptacek 8y ago
I read that too and don't understand it at all. Do you? By "shortfall", do they simply mean "if we charged full property taxes to Google, the revenue we'd get would be much more than the taxes we'd get from the 50 FTEs at the data center"? "Shortfall" suggests money the city and county would essentially be "spending" to have the data center, but that's not what's happening, right?
- abakker 8y ago
  https://www.taxnotes.com/editors-pick/google-seeks-20-years-minnesota-tax-breaks-data-center https://www.taxnotes.com/editors-pick/google-seeks-20-years-... that seems to be a much better article, but still doesn't elaborate on that "shortfall". The Taxnotes article makes this seem like a much better deal for the down, and a much more reasonable ask from google. They are effectively asking that they be granted a reduced increase in taxes on the proposed vast increase in property value from the value of their development" >The county assessor valued the land at $1.76 million, and the city estimated that the property's market value upon completion would be $41.6 million. Local real estate taxes on the property are around $16,476 and are estimated to jump to $328,726 after the facility is built. Jet Stream requested property tax breaks for 20 years for the data center, but not school district tax abatements.
  - tptacek 8y ago
    What a great find. Thank you!
asdfasgasdgasdg 8y ago
I'm sorry, I can't comment on the specifics of the deal. I'm only trying to point out that the exact total amount of surplus is not necessarily equal to the amount of tax abatement Google is requesting (it could be more or less).

tptacek 8y ago

I read that too and don't understand it at all. Do you? By "shortfall", do they simply mean "if we charged full property taxes to Google, the revenue we'd get would be much more than the taxes we'd get from the 50 FTEs at the data center"? "Shortfall" suggests money the city and county would essentially be "spending" to have the data center, but that's not what's happening, right?

abakker 8y ago
https://www.taxnotes.com/editors-pick/google-seeks-20-years-minnesota-tax-breaks-data-center https://www.taxnotes.com/editors-pick/google-seeks-20-years-... that seems to be a much better article, but still doesn't elaborate on that "shortfall". The Taxnotes article makes this seem like a much better deal for the down, and a much more reasonable ask from google. They are effectively asking that they be granted a reduced increase in taxes on the proposed vast increase in property value from the value of their development" >The county assessor valued the land at $1.76 million, and the city estimated that the property's market value upon completion would be $41.6 million. Local real estate taxes on the property are around $16,476 and are estimated to jump to $328,726 after the facility is built. Jet Stream requested property tax breaks for 20 years for the data center, but not school district tax abatements.
- tptacek 8y ago
  What a great find. Thank you!

asdfasgasdgasdg 8y ago

I'm sorry, I can't comment on the specifics of the deal. I'm only trying to point out that the exact total amount of surplus is not necessarily equal to the amount of tax abatement Google is requesting (it could be more or less).